In a statement to the Australian Stock Exchange (ASX) Virgin Australia acknowledged media reports that it was requesting financial support from the Australian Government in the order of $1.4bn as part of a broader industry support package to prepare for a prolonged crisis.
According to the statement this is a preliminary proposal and remains subject to approval by the Virgin Australia Holdings Board and the Australian Government and may or may not include conversion to equity in certain circumstances.
“Companies like the Virgin Australia Group are taking a range of measures to respond and manage the financial impact. However, support will be necessary for the industry if this crisis continues indefinitely, to protect jobs and ensure Australia retains a strong, competitive aviation and tourism sector once this crisis is over,” the firm said in its ASX statement.